Newcastle United sponsorship deal with Wonga will see St James' Park reinstated as stadium name

Newcastle United have attempted to appease growing supporter concern over
their sponsorship deal with short-term loan company Wonga by revealing the
club’s stadium will be renamed St James’ Park as part of the agreement.

Wonga.com will have their name on Newcastle’s black-and-white striped shirt from the start of next season, but have also paid to change the name of the stadium.

Although the exact figures of the deal have not been released, Telegraph Sport understands it will be worth more than £8million a year over the course of the four-year agreement.

Newcastle's owner, Mike Ashley, caused outrage on Tyneside when he decided to change the name to the Sports Direct Arena almost 12 months ago, reportedly to showcase the branding companies would receive in return for naming rights.

Wonga, however, has decided to score popularity points by reverting back to the traditional name and diverting criticism away from the fact there are those who feel they are not suitable commercial partners for a Premier League club.

Although there is nothing illegal about Wonga’s enterprise, the firm’s decision to charge an eye-watering 4,214 per cent APR on their internet-based payday loans has been criticised by local MPs, consumer groups and trade unions.

Ian Lavery, Labour MP for Wansbeck, who is a season ticket holder at St James’ Park, described Wonga as “financial predators who make their money from people suffering from unemployment, low wages and in the greatest financial need.

“Newcastle United will be sponsored by the money of deprived people up and down the country.”

Despite the harsh words, there are no restrictions in place preventing loan companies like Wonga sponsoring football clubs from either the Football Association or the Premier League and Newcastle are perfectly entitled to deal with them.

The St James’ Park signs will be put up in time for Newcastle’s next home game against Club Brugge in the Europa League on Oct 25, although the Sports Direct branding will remain prominent inside the stadium alongside Wonga.

Newcastle have been discussing the link-up for the past 18 months and the money it will bring will not only give the club more financial flexibility in the transfer market, it will also immediately provide £1.5million tat will be spent on improving the Academy.

Newcastle missed out on being given Category One status earlier this year as part of the Premier League’s Elite Player Performance Plan, but are confident they will be awarded the highest grade — and with it £750,000-a-year of extra funding — in the next few months.